What is the party who makes an offer in a contract called?

In a contract, the party who makes an offer is referred to as the offeror. This term specifically identifies an individual or entity that proposes the terms of the agreement to another party. The offeror initiates the contract process by presenting an offer, which can be accepted, rejected, or countered by the other party involved in the agreement.

Understanding the role of the offeror is essential in contract law since they set the stage for the terms and conditions of the contract. Their proposal outlines what they are willing to provide or do in exchange for the other party’s acceptance. The effectiveness of the contract hinges on the clarity and terms of the offer made by the offeror.

In contrast, the opposing party in the contract who receives the offer is known as the offeree. The agent serves in a capacity to act on behalf of another, typically in negotiations or executing the contract, but they are not the party making the offer. An intermediary typically facilitates communication between parties but does not directly engage in making offers or accepting them in a contractual sense.